Chinese EV Sales Hit Record High in Europe, Prompting Policy Debate

Chinese-made battery electric vehicles (BEVs) accounted for 14.2% of all EVs sold in the 18 largest Western European markets during the first five months of the year, according to Schmidt Automotive Research. That translates to 171,800 units and an increase of almost five percentage points compared with the same period in 2025. Brands such as BYD, Chery, SAIC and Xpeng are the primary contributors, while the UK alone absorbed about a quarter of those sales and Italy roughly a fifth. Leapmotor’s low-priced T03 model, subsidised to around €5,000, drove a notable spike in Italy, which the analyst described as an “anomaly.”

The Guardian

EU import duties on Chinese EVs sit at a standard 10%, with additional anti-subsidy levies reaching up to 35.3% for certain manufacturers. The United Kingdom has declined to apply the extra EU levies, making it the largest European market for Chinese cars. By contrast, the EU is reportedly weighing an extension of the tariffs to plug-in hybrid electric vehicles (PHEVs), which currently escape the extra duties.

The Guardian

Matthias Schmidt, founder of Schmidt Automotive Research, warned that Chinese BEV growth may be plateauing and that manufacturers will shift focus to PHEVs to exploit the tariff loophole. Oliver Blume, chief executive of Volkswagen, has called for the EU to close that gap, arguing that European PHEVs are uncompetitive against Chinese equivalents.

The Guardian

The surge places traditional European manufacturers under pressure as stricter emissions standards force them to accelerate their own BEV programmes. At the same time, Tesla recorded a 60% year-on-year sales increase across Europe, with the Model Y emerging as the best-selling individual model during the period.

The Guardian

• “I think they are hitting a wall when it comes to pure electric models,” — Matthias Schmidt, the founder — Matthias Schmidt, the founder

The Guardian